How the Launch of Binance.US Flouted Regulatory Concerns

FACTS

IV. ZHAO AND BINANCE ESTABLISHED THE BINANCE.US PLATFORM WHILE MAINTAINING SUBSTANTIAL INVOLVEMENT AND CONTROL OF ITS OPERATIONS.

B. Binance Announced the Launch of the Binance.US Platform.

151. On June 13, 2019, Binance issued a press release announcing that BAM Trading would soon be launching the Binance.US Platform. Binance claimed that it had entered into a “partnership with BAM Trading … to launch trading services for users in the United States” by “licens[ing] its cutting-edge matching engine and wallet technologies to its U.S. partner BAM to launch Binance.US.”

152. Zhao was quoted in the press release, stating that “Binance.US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.” 153. Consistent with the Tai Chi Plan, Binance’s press release coincided with updates to the Binance.com Platform’s Terms of Use that purported to prohibit U.S. investors. But Binance was careful not to make the link explicit. The same day the Binance.US Platform was announced, the Binance Consultant provided Binance internal guidelines advising that “[o]n the US launch, it is important to NOT link it to the .COM IP blocking [of U.S. investors]. That would suggest both that Binance is aware of previous violation and that BAM and .COM are alter egos of each other coordinating the work.”